Effort / Result Pullback Signal
The Effort / Result Pullback signal analyzes pullbacks in which much volume is wasted on an up or down wave and little result in price is achieved. The most effective use for these signals is to combine with MCumulativeDelta / MAutoFloorCeiling to confirm supply / demand and determine areas that are overbought / oversold to find optimal entries. Works especially great in trend trades.
How it works:
PB - Buy Pullback (Considering the length of the wave, the volume on the last down wave relative to the previous down wave is excessive. Combines with no new low)
PB - Sell Pullback (Considering the length of the wave, the volume on the last up wave relative to the previous up wave is excessive. Combines with no new high)
[PB] - Trend Buy Pullback (Same as Buy Pullback, but also in a trend. Higher Highs / Higher Lows)
[PB] - Trend Sell Pullback (Same as Sell Pullback, but also in a trend. Lower Highs / Lower Lows)
To achieve either a buy or sell signal, the length of the pullback wave must be less than the previous wave of the same direction. The volume of the pullback wave, relative to its length must exceed the volume of the previous wave of the same direction (This is what the Effort / Result part is). For Buy Pullbacks, the pullback wave must close higher than the previous down wave. For Sell Pullbacks, the pullback wave must close lower than the previous up wave.
Example 1: E-mini S&P - 3000 Tick Chart
Example 2: Crude Oil - 2000 Tick Chart
Example 3: E-mini Dow - 700 Tick Chart
Example 4: FOREX - GBPUSD M15
Example 5: FOREX - EURGBP M1